At US$65.76, Is It Time To Put Fortune Brands Innovations, Inc. (NYSE:FBIN) On Your Watch List?

While Fortune Brands Innovations, Inc. (NYSE:FBIN) might not be the most widely known stock at the moment, it saw a decent share price growth in the teens level on the NYSE over the last few months. With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Let’s examine Fortune Brands Innovations’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

See our latest analysis for Fortune Brands Innovations

What Is Fortune Brands Innovations Worth?

The stock is currently trading at US$65.76 on the share market, which means it is overvalued by 38% compared to my intrinsic value of $47.68. Not the best news for investors looking to buy! But, is there another opportunity to buy low in the future? Since Fortune Brands Innovations’s share price is quite volatile, this could mean it can sink lower (or rise even further) in the future, giving us another chance to invest. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

What kind of growth will Fortune Brands Innovations generate?

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. With profit expected to grow by 25% over the next couple of years, the future seems bright for Fortune Brands Innovations. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What This Means For You

Are you a shareholder? FBIN’s optimistic future growth appears to have been factored into the current share price, with shares trading above its fair value. However, this brings up another question – is now the right time to sell? If you believe FBIN should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.

Are you a potential investor? If you’ve been keeping an eye on FBIN for a while, now may not be the best time to enter into the stock. The price has surpassed its true value, which means there’s no upside from mispricing. However, the positive outlook is encouraging for FBIN, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop.

If you want to dive deeper into Fortune Brands Innovations, you'd also look into what risks it is currently facing. You'd be interested to know, that we found 1 warning sign for Fortune Brands Innovations and you'll want to know about this.

If you are no longer interested in Fortune Brands Innovations, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.